Intro to Econ
Markets and Policy!!!
Taxes!!!
Stonks
Graphs and Trade!!
100
the value of the second-best alternative, which is given up when choosing among alternatives
What is opportunity cost?
100
The government lower the tax rate so that people have more money to spend. What type of fiscal policy does this match? (expansionary/contractionary)
expansionary!
100
a tax in which the tax rate increases as the taxable amount increases
progressive tax
100
a business structure in which an individual owns the entire company
sole proprietrship
100
Which points show efficient production of products?
A and B
200
all the money available in an economy
money supply
200
the change in total cost of production after producing one extra unit
marginal cost
200
a tax in which the tax rate increases as the taxable amount decreases
regressive tax
200
a hybrid business structure found in the United States that combines characteristics of a partnership and a corporation
limited liability corporation (LLC)
200
How many units of guns and butter are produced if the resources are being used efficiently?
4 units of guns, 30 units of butter
300
John Maynard Keynes believed in...
a. higher government intervention and lower taxes for the people
b. self-interest and little to no government intervention
Higher government intervention and lower taxes for the people
Adam Smith is the guy who believed in self-interest and no gov't intervention
300
the additional revenue received by selling one additional unit
marginal revenue
300
a tax in which the tax rate remains constant irrespective of income level or taxable income
proportional tax
300
Which are NOT characteristics of money?
a. divisibility
b. uniformity
c. velocity
d. acceptability
e. audacity
300
A ______ exchange rate is determined by supply and demand forces
a. fixed exchange rate
b. floating exchange rate
c. managed exchange rate
floating exchange rate
400
an effect of an economic action that causes harm or loss to unrelated parties
negative externality
400
This type of monetary policy helps increase money supply by aiming to increase consumer spending
expansionary policy
400
Name the three components that make up the governments mandatory spending
Medicaid, Medicare, Social Security
400
What type of currency does the U.S. use?
a. commodity money
b. representative money
c. fiat money
c. fiat money
400
A _____ exchange rate is when a government "pegs" or ties the value of its currency to the value of another country's currency
a. fixed exchange rate
b. floating exchange rate
c. managed exchange rate
fixed exchange rate
500
an effect of an economic action that benefits unrelated parties
positive externality
500
This type of monetary policy helps reduce money supply in an economy when inflation is rampant
contractionary policy
500
With a progressive tax, the tax rate increases as income increases. Which individuals bear a greater burden with this type of tax?
higher-income individuals
500
NAFTA was a free trade agreement between the United States and what other two countries?
Canada and Mexico
500
When exports exceed imports, this is called a trade _____
surplus